Nissan 2007 Annual Report Download - page 14

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Nissan Annual Report 2006-2007
12
At our third-quarter financial announcement, we
acknowledged our performance was unsatisfactory
and pledged to take immediate action.
We now have a new leadership team; with an
Executive Committee expanded from seven to nine
members to better cover our business priorities.
We have also taken a number of business
initiatives to improve profitability:
• In Japan, we are restructuring our dealer
network to focus more on the customer with
better-trained resources.
• In the first quarter, our Oppama and Tochigi
plants transitioned to single-shift operations to
be in line with actual demand in Japan.
• Nissan Shatai will close its #1 plant and shift
production to the #2 plant, and to the Kyushu
plant, which is being expanded.
• We have initiated voluntary-retirement programs
across all operations in Japan.
• In the U.S., we have implemented voluntary-
transition programs.
• In Europe, we’re transforming national sales
companies into leaner regional business units.
• In South Africa, we have announced headcount
reductions to boost productivity and
competitiveness.
We are fine-tuning our operations in order to boost
our performance. As we address short-term issues,
we remain focused on our long-term goals, while
keeping a close eye on the motivation and
engagement of our people.
Sales objective
• Global sales at 3.7 million units, a 6.2 percent
increase
• Japan sales at 700,000 units, which is based
on the expectation of a further decline in total
industry volume and a very competitive market
• U.S. sales at 1.1 million units
• European sales at 600,000 units
• General Overseas Markets, including Mexico
and Canada, sales at 1.3 million units
Financial outlook
Throughout fiscal 2007, we will again face a
challenging environment due to high raw-material and
energy prices, rising interest rates, volatile foreign-
exchange rates, high incentive levels and a growing
number of distressed suppliers and competitors.
The only way to overcome all these obstacles is
to remain focused on delivering Nissan Value-Up
effectively and completely.
Taking all of the above into account, our forecast
for fiscal 2007 is as follows. This is based on a
foreign-exchange-rate of ¥117 per dollar and
¥148 per euro, which were the average rates during
fiscal 2006:
• Net revenue of ¥10 trillion 300 billion
• Operating profit of ¥800 billion
• Ordinary profit totaling ¥773 billion
• Net income at ¥480 billion
• Capital expenditures of approximately
¥515 billion
• R&D expenses totaling ¥490 billion
Taking Action to Boost Performance
FISCAL 2007 OUTLOOK
»PERFORMANCE